PRODUCT DIFFERENTIATION
RECENT MERGER HISTORY
In 2015, there have been a number of mergers and acquisitions in the footwear industry. The footwear industry has had many M&As since the 1970s, but in recent years consumers seem to be unaware because acquiring-companies just add on companies under their conglomerates, leaving company names unchanged. Coach had bought Stuart Weitzman for $574 million. New Balance and Berkshire Partners acquired Rockport for $280 million. Iconix Brand Groups purchased Pony for $37 million. ABG has acquired Payless Footwear brands. Companies such as Steve Madden have been trying to make more and more acquisitions. It bought Dolce Vita for $60.3 million and has also purchased the intellectual property rights and assets of Blondo.
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In the footwear industry, smaller brands have a hard time raising capital for businesses, and larger fashion-type conglomerates are eager to make add-on acquisitions for parent companies. There have only been a few mergers such as when Liberty Shoes merged with Liberty Retail Revolutions. In the case of Rockport, sold by Adidas and purchased by New Balance, there is evidence of how mergers and acquisitions are affecting the market structure for the footwear industry. Rockport had supposedly slow growth under Adidas, and the role of M&A can allow for efficiency and regained market power in terms of turning a higher percentage of